Disability can often arise from accidents and/or disease. According to the U.S. Social Security Administration, around 1 in 4, 20-year-olds will become disabled after retirement. But disability insurance is a way to replace income in such circumstances.
A short-term disability insurance policy helps you immediately after an accident or onset of disease. If you are working for a company, your employer may offer short-term disability insurance. If your company does not offer it or if you work for yourself, you can get the insurance policy from a private insurance company. But these plans may cost more than the benefits.
Long-term disability insurance provides coverage if you’re disabled and out of work for a long time. It can also be provided by the employer, but often it will need to be augmented by additional coverage. Generally, there is a 90-day waiting period before coverage begins, and coverage ends at age 65. The cost of disability insurance is dependent on age, gender, occupation, and duties, but you can expect to pay up to 1 percent to 3 percent of your annual salary.
Common questions about long-term disability insurance
Best Life Insurance Advisors is here to help you answer all these questions.